Falcon Real Estate Completes Sale of Gateway Corporate Center for $48.5 Million
Falcon Real Estate has recently completed the sale of Gateway Corporate Center, a 162,326-square-foot suburban office complex near Los Angeles, for $48.5 million. The property consists of two buildings, each totaling 81,163 square feet and situated within a well-located business park in Diamond Bar, a Los Angeles County suburb. Built in 2000, Gateway Corporate Center is 99 percent leased to 16 tenants. Located at 21680 and 21688 Gateway Center Drive, the property is anchored by Travelers Insurance and Wells Fargo, two credit-worthy tenants that occupy 78 percent of the space.
Falcon originally advised the overseas private-client on the $24.5 million acquisition of the Gateway Corporate Center during October 2002 and provided supervisory asset management services up to the date of the sale of the property.
“Gateway Corporate Center is the most desirable asset in the Gateway Corporate Center Business Park,” said Scott Sweeney, executive vice president of Falcon Real Estate. “Falcon was very pro-active in the management of this asset over the holding period. In anticipation of the sale, we successfully renewed all tenants with expiring leases in 2007 to give the building a one percent vacancy and aggressively pushed rents to current market rates. The property was then put on the market using a competitive bidding strategy to maximize its value and was sold at a price equal to a 5.25% cap rate and a large double-digit return for the investor on this investment.”